Your Fund Selection Guide - Manulife

1 Your Fund Selection Guide Use this Guide to help you make investment choices for the KPMG Retirement Program. About this Fund Selection Guide Working through this Guide will help you make investment choices suited to your needs. If you have questions about your investments . ou can contact a Financial Education Specialist by calling 1-888-727-7766 from Monday to Friday, Y. between 9 and 5 ET. 2. Determine what type of investor you are To Do! Answer the questions below to determine whether you should build your . own portfolio or select a single, ready-made fund.

2 A B. How interested are you in selecting I am not interested. I am very interested. investments for your retirement savings? I don't want to review I check my investments How likely are you to monitor and rebalance my investments. on a regular basis your investments on an annual basis? (at least quarterly). How would you rate your investment I have little to no knowledge I am confident knowledge? about investing. in my investment knowledge. If you chose Turn two or more The best investment strategy for you to responses Column A .. to select a Target Date Fund.

3 4. A Target Date Fund offers a well-balanced investment portfolio inside a single fund. Each fund is identified by its year of maturity, and as the maturity date approaches the fund gradually rebalances to become more conservative. Column B .. to build your own portfolio. 5. Choose from the individual funds available through your program to build your own portfolio. 3. How to choose a Target Date Fund To Do! Decide at what age you want to retire: _____.. Calculate the year you plan to retire: _____. Use the table below to select the Target Date Fund that is best suited to you.

4 For example: If you plan to retire in 2033, the fund best suited to you is the MLI. BlackRock LifePath Index 2035 fund. Specify the 4-digit fund code for the Target Date Fund you select in the . Your investment instructions section on each Application form. If you plan to retire during The Target Date fund for you is Fund code the period . Before 2021 MLI BlackRock LifePath Index 2020 Fund 2324. 2021 2025 MLI BlackRock LifePath Index 2025 Fund 2325. 2026 2030 MLI BlackRock LifePath Index 2030 Fund 2326. 2031 2035 MLI BlackRock LifePath Index 2035 Fund 2327.

5 2036 2040 MLI BlackRock LifePath Index 2040 Fund 2328. 2041 2045 MLI BlackRock LifePath Index 2045 Fund 2329. 2046 2050 MLI BlackRock LifePath Index 2050 Fund 2330. 2051 or later MLI BlackRock LifePath Index 2055 Fund 2331. If you are already retired, or are close to retirement, there is retirement fund (2321 MLI BlackRock LifePath Index Retirement Fund) that you may be interested in. To see the investment management fees and historical rates of returns for these funds return to website and select the Fund Selection option from the left menu.

6 Links to detailed descriptions of each fund and applicable IMF can be found under bullet #3 Your Investment Knowledge. Rates of return can be found by clicking the link found in bullet #5 Rates of Return. 4. Determine your investor style To Do! Circle one answer for each question.. Keep track of your score for each question.. Tally the scores you record for each question to get your total.. Your age, the numbers of years remaining until you retire, and how you feel about risk will determine your investor style. Once you know your investor style, you can choose funds for your retirement savings.

7 Your score 1. What is your investment horizon when will you need this money? a. Within 3 years (0). b 3-5 years (3). c. 6-10 years (5). d. 11-15 years (8). e. 15 + years (10). 2. What is your most important investment goal? a. To preserve your money (0). b. To see modest growth in your account (4). c. To see more significant growth in your account (7). d. To earn the highest return possible (10). 3. Please indicate which statement reflects your overall view of managing risk: a. I don't like risk and I am not prepared to expose my investments to any market fluctuations in order to earn higher long-term returns.

8 (0). b. I am prepared to experience modest short-term market fluctuations in order to generate growth of capital. (2). c. I am prepared to experience average short-term market fluctuations in order to achieve a higher long-term return. (4). d. I want to maximize my long-term returns and am comfortable with significant short-term market fluctuations. (6). 5. 4. If you owned an investment that declined by 20% over a short period, what would you do? a. Sell all of the remaining investment (0). b. Sell a portion of the remaining investment (2).

9 C. Hold the investment and sell nothing (4). d. Buy more of the investment (6). 5. If you could increase your chances of improving your investment returns by taking more risk, would you: a. Be unlikely to take more risk (0). b. Be willing to take a little more risk with some of your portfolio (2). c. Be willing to take a lot more risk with some of your portfolio (4). d. Be willing to take a lot more risk with your entire portfolio (6). 25. 6. The following picture shows three Return (%). 22. model portfolios and the highest and 20. 15. lowest returns each is likely to earn 15.

10 In any given year. Which portfolio 10 8. would you be most likely to hold? 5. a. Portfolio A (0) 0. -1. b. Portfolio B (3) -5. -6. c. Portfolio C (6) -10. -12. -15. Portfolio A Portfolio B Portfolio C. 7. After several years of following your retirement plan, you review your progress and determine you are behind schedule and will need to modify your strategy in order to retire at your preferred age. What would you do? a. Keep the same investments you currently hold, but increase your contributions as much as possible. (0). b. Slightly increase your exposure to riskier investments and slightly increase your contributions.